If approved, Arkansas would provide fiscal year 2027 funding for public schools and set rules for isolated districts, program spending, and education fund reports.
Public schools and education programs would receive funding for the 2026-2027 fiscal year, including money for school operations, teachers, special education, technology, transportation, and student support.
Schools that meet petition and election rules could form isolated districts, receive assigned property and funding, and follow a transition process before opening independently.
Several education programs would receive earmarked funding, while the Department of Education would regularly report school-fund balances and distributions to legislative reviewers.
The Department of Education would be authorized to spend up to $3.662 billion on grants, aid, and special programs for local school districts and other education purposes. The funding covers numerous education programs, including state foundation funding, teacher salaries, public school employee insurance, special education, transportation, tutoring, literacy, and technology. Spending would be limited to the amounts appropriated and to other state fiscal-control and procurement laws. The money would be payable from the Division of Elementary and Secondary Education Public School Fund Account. The supplied text also lists separate appropriations for the Arkansas Public School Computer Network, Education Renewal Zones, and the Sexual Risk Avoidance Education Program. The appropriations apply to the fiscal year ending June 30, 2027, and the bill states that most sections take effect July 1, 2026.
An isolated school could separate from an existing district after a qualifying petition, signature review, and detachment election. The rules cover isolated schools and districts formed from schools that were annexed or consolidated, including districts created through the 2026 annual school election and future districts formed under the same process. A petition must include signatures from at least 350 registered voters in the isolated school area or at least 51% of those registered voters. The existing district board must request signature verification and call an election at the next annual school election. The new district would receive specified property, buses, funds, and related responsibilities, while the existing district would continue educating students during the transition. A new district must complete required administrative steps before certifying that it is ready to operate. The new district generally has up to 16 months after the detachment election to certify readiness; if it does not, it may consolidate or dissolve, and it dissolves automatically after 24 months if no action is taken.
The Department of Education would direct certain funds to specified programs and report school-fund balances and distributions to legislative oversight groups. The provisions cover isolated-school funding, national school lunch programs, professional development, reading programs, instructional materials, technology grants, student competitions, and the state education funds named in the bill. Up to $5.3 million from the ESA Matching Grant Program would be set aside for qualifying school-district programs serving identified national school lunch students, with matching payments distributed proportionally until funds run out. At least $3.005 million or 18%, whichever is greater, of Technology Grants would support the EAST Initiative. The department would submit quarterly and monthly fund reports, generally no later than 10 days before the relevant legislative subcommittee meeting. These special funding and reporting provisions generally apply from July 1, 2026, through June 30, 2027.
No hearings or votes scheduled.